Citi to Begin Offering UK Natural Gas Contracts in Euros

  Citi to Begin Offering UK Natural Gas Contracts in Euros

Business Wire

LONDON -- January 31, 2013

Citi is launching a new product quoting UK natural gas contracts denominated
in euros rather than British pounds.

The product, aimed at European counterparties active in the UK and continental
gas and power markets, is designed to reduce the cost and administrative
burden for traders, treasury departments and CFOs who are required to manage
volatility in cash-flows arising from cross-border risks.

While such contracts have been offered previously on a bilateral,
over-the-counter basis, Citi is the first party to offer broker market
liquidity in this manner. The bank will show live bid and offer data via
Tullett Prebon and will provide liquidity via Trayport’s electronic dealing

“This new contract addresses our clients’ need for more efficient access to
liquidity in UK natural gas, and its functionality is enhanced by our market
leading Velocity platform and our global FX expertise,” said Jogchum Brinksma,
Managing Director with responsibility for gas trading at Citi. “Our EuroNBP
product combines our renowned FX capabilities with our growing commodities
franchise, providing greater ease of execution than has previously existed.”

EuroNBP, a reference to the National Balancing Point, the pricing point for UK
natural gas, begins trading on January 31. EuroNBP contracts will display live
and executable OTC bid and offer prices for periods of up to two years forward
with monthly, quarterly and seasonal contracts. Standard lot size will be 30
megawatt-hours per hour, in line with other continental European gas markets
such as TTF (Dutch Title Transfer Facility) and NCG (Net Connect Germany).

EuroNBP liquidity will mirror that of the traditional NBP market, which is
typically quoted in pence per therm.


Citi, the leading global financial services company, has approximately 200
million customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments and
institutions with a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking, securities
brokerage, transaction services, and wealth management.

Additional information may be found at | Twitter: @Citi |
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Simon Boughey
+44 207 500 8304
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